ONGC gets better price for oil under new rules: Report

NEW DELHI: Oil and Natural Gas Corp has for the first time sold oil through a three-month local tender, commanding $5-$8 per barrel more than existing rates under new rules that allow producers marketing freedom, industry sources said.
ONGC, the country’s top oil explorer, accepted bids at that level through auction of light sweet oil from its western offshore field, including supplies from the country’s flagship Mumbai High fields, they said.
In June, India abolished a rule that said oil from blocks awarded prior to 1999 must be sold to government-nominated customers, mostly state refiners. That meant producers such as ONGC and Oil India often sold oil from those blocks at below market rates.
ONGC had offered 33 lots of 412,500 barrels each – 26 cargoes from Uran and seven cargoes from Mumbai offshore – for sale starting Nov. 1 at minimum 50-cent premium over the average monthly…

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